Sandell Seeks Settlement With Ethan Allen, Prefers To Avoid Proxy Fight

(RTTNews) - Sandell Asset Management Corp., a significant shareholder of Ethan Allen Interiors Inc. (ETH), said it has sent a letter to Ethan Allen's board of directors.

Sandell Asset Management said it was initially encouraged by Ethan Allen's decision to re-schedule its annual meeting and reached out to the Company's CFO Corey Whitely on August 14, seeking to enter into discussions with the company.

However, Sandell Asset Management said it was "subsequently taken aback" by the e-mail that it received from Whitely on August 18, indicating that the Company does not intend to speak with it until "later in September after Labor Day," a delay of more than three weeks.

"We find this refusal to engage in any dialogue with us for such an extended period of time to be irresponsible and possibly reflective of a strategy to play for time," Sandell Asset Management said in the letter.

Further, Sandell Asset Management said that while it would like to resolve the matter and avoid the need for a proxy contest, it was fully prepared to nominate a slate of director candidates to stand for election at Ethan Allen's annual meeting.